Hedge Fund Jobs

4 Tips for Industry Switching

Every day I get resumes from industry switchers, folks who've built a career in mortgage lending, medical sales, engineering, etc... and want to move into the hedge fund world for the big money. It's a hard time to try the switch because the financial sector has been hit hard: hedge funds are running leaner and meaner. It's also a challenging time because the poor economy, particularly the implosion of the mortgage industry, has flooded the hedge fund world with thousands of applicants vying desperately for any chance to make big money again. But we don't always get to choose our timing! So here are 4 tips to help you MAXIMIZE your chances of making a successful industry switch:

1. Back to school. One established path for industry switchers is the full-time MBA programs at top universities. Every year, folks enter Harvard, Wharton, Stanford, and other top schools with a game plan to hop from some other industry into financial services upon graduation. And many of them are successful at switching. This path includes taking the Summer between years to do an internship at a financial services firm. It also includes taking a pay cut, at least at first. Despite these sacrifices, the path can work. If this option would fit into your life, it's something worth considering. Keep in mind that only top 20-ish schools make the cut. Generally speaking, hedge funds and investment banks focus their MBA recruitment energy at the top schools.
2. Industry designations. The Hedge Fund Group (HFG) and many others offer hedge fund and investment related certifications and designations. These show that you've learned the terminology and are serious. For someone making a switch, those two things can really set you apart! Keep in mind that these tools will not allow you to walk into a management job or a senior analyst role unless you're an amazing stud (or studlet) from an industry with very transferrable skills (e.g. sometimes pedigreed and successful statisticians, mathematicians, engineers, or physicists can walk into high-level analyst or even PM jobs). Nevertheless, if you're trying to break into the industry, designations and certifications can be ice-breakers.
3. Network, network, network. If you want to switch into the industry, you're not going to get in by sending your resume to headhunters. Firms hire headhunters to fill specific roles and when they're paying recruitment fees they expect industry-insiders with know-how, track record, and CONTACTS. Firms do not hire headhunters to supply them with random resumes of people from random industries with no industry contacts. You're also not going to get a shot by posting your resume on an online job database or job board, even a financial services or hedge fund oriented site. Again, firms only go to these sources to fill a very specific need and they are looking for people with experience, track record, and industry contacts. Does this mean you're wasting your time? Heck no! But your path to success is not posting or emailing your resume. If you're going to industry switch, you need to get a foot in the door with someone you know. This means networking, lunches, trade shows, getting to know people and then expanding your web of contacts. People in all industries hire friends and acquaintances from outside of their industry - knowing that they can ramp them up to speed. It's the same thing in the hedge fund world. Breaking in through friends and acquaintances is pretty easy. Breaking in by emailing your resume to headhunters and posting it online is a waste-o-time.
4. Commission-only capital raising. If you're willing to dial-for-dollars on a commission-only basis until you prove yourself, there are openings for you everywhere. Just directly apply to firms and you'll find that a significant percentage will be willing to talk. Just make sure you look and sound sharp. Even commission-only, you're still representing the firm.

If you're an industry switcher, you've got to differentiate yourself from the 5 million people flooding cyberspace with their resume right now. Use these tips and you'll blaze a path to your new career in the alternative investment world.

Marc Goormastic of Goormastic Executive Search

Hedge Fund Jobs

Getting Your Foot In The Door

I'm constantly getting asked: "How do I get my foot in the door at a hedge fund?" Everybody wants to get in, especially ex-mortgage people. The perception is of astronomical pay, glamor, Hickey Freeman suits, Ferragamo shoes. Here are 3 tips to wedge your foot in that door...

1) Work for free. Industry switching usually means taking a cut in pay. To get your foot in the door, be willing to start commission-only or at a very low pay rate. Once you prove yourself valuable there will be plenty of opportunity.

2) Improve your pedigree. While there may be a few people involved with hedge funds who didn't graduate from a good college - they are either unusually experienced or unusually brilliant. For most of us, pedigree matters. Consider going back for an MBA at a "name school". Full-time programs are more fashionable than executive programs if you're making an industry switch. Consider industry-specific training programs and designations.

3) Have friends on the inside. Getting hired off the street into a hedge fund, even for an entry-level job, is pretty hard. Getting hired at a hedge fund where one of your good friends works is not so hard. Keith Ferrazzi's book "Never Eat Alone" is a new classic. Read it and then read it again.

Remember that the financial market is pretty tough right now. A lot of folks are sitting on the sidelines with their money and hedge funds, like everyone else, are trying to run lean and mean. Top performers with track record, pedigree, and "know how" are prized. Random people who washed out of other industries are in LOW demand. To get your foot in the door you'll need to go the extra mile. That's not what everyone wants to hear, but it's the truth.